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Apple Earnings, Revenue Beat in Q4, but iPhone Weakness Weighs

Stock MarketsOct 29, 2020 04:44PM ET
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© Reuters. Apple Earnings, Revenue Beat in Q4

By Yasin Ebrahim

Investing.com - Apple reported better-than-expected fourth-quarter results that beat Wall Street estimates, but a larger drop in iPhone revenue and lack of guidance spooked investors. 

Apple shares (NASDAQ:AAPL) lost 3.5% in after-hours trade following the report.

Apple announced earnings per share of $0.73 on revenue of $64.70B. Analysts polled by Investing.com anticipated EPS of $0.71 on revenue of $63.98B.

iPhone revenue, which makes up about half of total revenue, fell to $26.4 billion from $33.4 billion a year earlier, missing estimates of $27.93 billion. The lower-than-expected figure comes as consumers are expected to have waited to buy the iPhone 12, which was launched last month. 

Revenue from Apple’s service business including Apple News, Apple TV+ and iCloud, grew to $14.55 billion from $12.5 billion, beating estimates of $14.12 billion.

Wearables, home and accessories generated $7.88 billion in revenue, up from $6.52 billion, beating consensus of  $7.23 billion.

The tech giant did not provide guidance. 

"Apple remains an attractive stock to buy even after its 57% rally this year. The company’s innovation machine, its expanding services segment and its wearable devices offer solid reasons to remain bullish on future growth. The company’s recent product launches, including its 5G phones, show that the company is on the right track to monetize its massive installed base. Any post-earnings weakness should be taken as a buying opportunity," Investing.com's Haris Anwar said.

Apple Earnings, Revenue Beat in Q4, but iPhone Weakness Weighs
 

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Comments (8)
Mart Zee
Mart Zee Oct 29, 2020 9:41PM ET
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AAPL announced during last earnings that they would not be providing guidance anymore and now investors are spooked about it? Really? What a bunch of [expletive]...
Yelen Shim
Yelen Shim Oct 29, 2020 9:41PM ET
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Analysts still do come up with their own guidance though
Christopher Dunson
Christopher Dunson Oct 29, 2020 8:36PM ET
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Wuhan 19 spread via your phone....throw it out now !!!
David David
David9 Oct 29, 2020 8:36PM ET
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Please provide proof...without proof, it's all he said she said...
Christopher Dunson
Christopher Dunson Oct 29, 2020 8:36PM ET
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David David Modern media requires no proof. Please try and keep up....
John Healy
John Healy Oct 29, 2020 7:19PM ET
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Q4, you say?
Kalpesh Shah
Kalpesh Shah Oct 29, 2020 6:05PM ET
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Millions in usa don't have money to buy food are they going to buy an apple phone ???
Elias Giannakopoulos
Elias Giannakopoulos Oct 29, 2020 6:05PM ET
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Yeah those millions arent there target market my friend. Apple is more of a luxury brand and sells their name. Also everyone was sitting on checks they couldve been smarter with the monry
Lake Lot
Lake Lot Oct 29, 2020 6:05PM ET
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Yep , they buy fones be4 food
Joanna Yin
Joanna Yin Oct 29, 2020 5:47PM ET
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Split itself doesn't make profit. Comparing the year to year revenue and earning, the stock is overvalued too much.
Elias Giannakopoulos
Elias Giannakopoulos Oct 29, 2020 5:47PM ET
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What would you value it
Aaron Pierett
Aaron Pierett Oct 29, 2020 5:47PM ET
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Timmy Long
Timmy Long Oct 29, 2020 5:47PM ET
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Which tech stock isn't overvalued? Having said that, this stock is still more reasonable than most tech stocks e.g. ZOOM, Tesla, Netflix etc.
Katie Belle
Katie Belle Oct 29, 2020 5:05PM ET
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over valued
Bret Lafrance
Bret Lafrance Oct 29, 2020 4:59PM ET
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The down reaction is fabricated, it was a great quarter.
chrisP bacon
chrisP bacon Oct 29, 2020 4:59PM ET
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So let me get this straight.  Apple averages about $2.75-3 per share every year for the last few years and not much growth from here.  Stock price is 38 times their earnings at 115.  So if I hold it for 38 years, they'll have earned as much as the share I own?  Maybe it was a deal at 19x earnings in 2017 but now it's double that and the eps is topping out?
Bret Lafrance
Bret Lafrance Oct 29, 2020 4:59PM ET
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I would love to see this market bust out and bankrupt the shorts right now.
Ermin Me
Ermin Me Oct 29, 2020 4:59PM ET
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Waiting patiently for a short squeeze
Juvenal Machado
Juvenal Machado Oct 29, 2020 4:59PM ET
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earnings arent topping out mate, pre December sales always slow in the wait of the new phone, the 3M+ units bought in the last 2 weeks don't factor in, and on top of that you're in world crisis so obviously iphone sales slow.
Juvenal Machado
Juvenal Machado Oct 29, 2020 4:59PM ET
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Earnings arent topping out, pre December sales always slow in the wait of the new phone, the 3M+ units bought in the last 2 weeks don't factor into this quarter, and on top of that you're in world crisis so that factored In the iphone sales slow down as well.
chrisP bacon
chrisP bacon Oct 29, 2020 4:59PM ET
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Juvenal Machado .  So earnings are rising fast enough to justify price tripling in 3 years.  Keep on buying then sucka
 
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